BAIC BluePark advances share issuance, outlines strategic vision

BAIC BluePark New Energy Technology Co., Ltd. announced its reply to the Shanghai Stock Exchange's audit inquiry regarding its application for the issuance of shares to specific targets. The company plans to raise up to 600,000.00 yuan, with 500,000.00 yuan for its "New Energy Vehicle Model Development Project" and 100,000.00 yuan for its "AI Intelligent Platform and Intelligent Driving Electrification System Development Project." These R&D projects focus on adaptation and upgrades to existing lines rather than new production capacity.

The share issuance involves up to 35 specific targets, including controlling shareholder BAIC Group and its affiliate Foton Motor, who committed to subscribe up to 50,000.00 yuan and 250,000.00 yuan, respectively. The lock-up period for shares subscribed by BAIC Group and Foton Motor will be 36 months, in compliance with regulations. BAIC BluePark anticipates a capital shortfall of 1,086,479.60 yuan over the next 36 months, which the proposed financing will partially address, with the remainder covered by existing credit lines.

BAIC BluePark's historical R&D capitalization rate is higher than industry averages, justified by its focus on new model development in the early stages of the product lifecycle, with over 90% of R&D investments in core on-sale and in-development models. The company reported continued losses but projects improved profitability with new models and cost controls. Previous fundraising projects have largely concluded or been reallocated to new R&D initiatives, all adhering to capitalization criteria.